The flexibility offered for the basis of a mechanism to put a price on GHG emissions across Canada shows the collaboration between the Federal Government, and the provinces. The provinces can either set up a carbon tax, as in British Columbia and soon, in Alberta or use the cap-and-trade system as in Québec and Ontario. In addition, the Prime Minister announced that each province has until 2018 to put its system in place, failing which the federal government will do it for them.

While the price on carbon is an important component in the fight against climate change, Canada needs to develop an action plan to achieve and even exceed the targets that Canada set in Paris.

Since revenues from carbon pricing will remain with provinces and territories of origin, all provinces will now have all the means to include transportation electrification as a key component of their portfolio of solutions to reduce emissions. The Federal Government, for a short transition period, should support the overall provincial initiatives by supporting a national policy and action plan on transportation electrification, and securing greater certainty and predictability to Canadian businesses. EMC’s recommendations are included in our Pre-Budget Submission, and our Submission to the Minister of Environment and Climate change of June 2016. Transportation electrification is the readily available and concrete solution now, for all classes of citizens.

The transition period from 2017 to 2020 is crucial and a perfect time to invest in this field. The current technology plus the upcoming introduction of EV models with longer ranges and more affordable prices, and the rapidly evolving transposition of technology through range increase at competitive costs to light and medium weight transportation provide the foundations for a long term clean growth to seize now. The expected results will depend on the allocated funds to support this period that can be modulated.

At EMC, we are convinced that the combined strong support of the Federal Government to the provinces, for the end user and for the industry can be a winning approach for Canada.